How can I pay less in taxes? W-4 Form?

Question

I am 20 yrs old and so tired of paying so much in taxes every week. I live on my own and could use the extra money. Is there any way that I can fill out the W-4 form in a way that they won't take so much money away?

Answer 1

Sure, just claim additional exemptions on your W-4. If you are claiming single and 1 right now, just change it to single and 2 or 3. But, just to let you know, by doing so so that you end up with more money in your pocket now, you might be surprised with an unpleasant federal bill to pay come next April. www.paycheckcity.com is a paycheck calculator website that can help you determine exactly what you should be claiming on W-4 for your circumstances.

Answer 2

You should go through the W-4 worksheet and ensure that you're having the correct amount withheld. You don't want to end the year either owing the government money that you don't have, or getting a huge refund. Either of these indicates that you are having the wrong amount withheld. Certain payments, such as bonuses, will always be withheld at a higher rate, no matter how you complete the W-4.

Lots of people just fill out the W-4 without going through the worksheet and thus have way too much or too little withheld.

Answer 3

Changing your W-4 won't change the total tax that you pay for the year, it'll just change when you pay it. If you change it to get $10 more per week all year, then the $520 would make your refund that much less if you have a refund - if you don't, you'd have to pay when you file.

Answer 4

Rather they take it every week, or you have to pay it at year end, you still pay the same.

The only difference is if you substantially underpay, they fine you too.

How much did you get back from filing your taxes last year? That number would determine what you can do to change your weekly withholding.